Malaysia needs to ship RM1.2 trillion worth of semiconductor exports by 2030 to maintain its position as the sixth largest exporter in the world.

Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said that achieving such a significant increase will demand concerted efforts across various facets of the semiconductor value chain.

He highlighted that this goal represents a compound annual growth rate of about 7.6% from the current export value.

“To achieve this growth, Malaysia will need to focus on improving its capabilities across the semiconductor value chain, including advanced packaging, integrated circuit (IC) design, and smart manufacturing,” he said in a fireside chat at Tech in Asia Conference 2024 recently.

Wong stressed the necessity for collaboration between the government and the industry to tackle existing challenges, particularly talent shortage, attracting foreign investment and supporting the development of local semiconductor companies and ecosystems.

He said: “300,000 technical talents and engineers are needed in the sector, which the government and industry will need to work together to attract, train, and retain more local talent through initiatives like scholarships, cross-disciplinary training programmes, and collaborations with universities.”

The government, Wong said, needs to allow the strategy of using other countries’ talent in bridging the gap of the industry’s talent shortages. “The government should try to get all foreigners who study in Malaysia, especially in science and engineering, to continue working in Malaysia. This is under consideration and MSIA is hopeful to hear some positive news.”

He added that attracting foreign direct investment from multinational semiconductor companies is crucial for driving technology transfer and bolstering the local ecosystem. This may require offering competitive incentives and reducing barriers to entry to make Malaysia a more appealing destination for such investments.

Wong pointed out that the government’s National Semiconductor Strategy aims to nurture 10 Malaysian companies in advanced packaging and IC design.

“Providing funding, mentorship, and other support for local startups and small and medium enterprises will be essential in building a stronger indigenous semiconductor industry. Such measures are critical for fostering innovation and ensuring the industry’s sustainability.

“As for improving productivity and automation, upgrading manufacturing capabilities through smart automation and Industry 4.0 technologies will be key to enhancing productivity and competitiveness in the semiconductor industry.”

Adopting these advanced technologies will help streamline processes and reduce costs, making Malaysian semiconductor products more competitive on the global stage, Wong said.

“The government should continue to position Malaysia as an attractive alternative manufacturing hub for advanced semiconductor products. This strategic positioning is crucial as multinational companies seek to diversify their supply chains in response to global uncertainties.”

He expressed optimism about Malaysia’s potential to solidify its position as a leading semiconductor manufacturing hub. “With the right policies, investments, and collaborative efforts, Malaysia has the potential to achieve its ambitious growth targets for the industry,” Wong said.Malaysia needs to ship RM1.2 trillion worth of semiconductor exports by 2030 to maintain its position as the sixth largest exporter in the world.

Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai said that achieving such a significant increase will demand concerted efforts across various facets of the semiconductor value chain.

He highlighted that this goal represents a compound annual growth rate of about 7.6% from the current export value.

“To achieve this growth, Malaysia will need to focus on improving its capabilities across the semiconductor value chain, including advanced packaging, integrated circuit (IC) design, and smart manufacturing,” he said in a fireside chat at Tech in Asia Conference 2024 recently.

Wong stressed the necessity for collaboration between the government and the industry to tackle existing challenges, particularly talent shortage, attracting foreign investment and supporting the development of local semiconductor companies and ecosystems.

He said: “300,000 technical talents and engineers are needed in the sector, which the government and industry will need to work together to attract, train, and retain more local talent through initiatives like scholarships, cross-disciplinary training programmes, and collaborations with universities.”

The government, Wong said, needs to allow the strategy of using other countries’ talent in bridging the gap of the industry’s talent shortages. “The government should try to get all foreigners who study in Malaysia, especially in science and engineering, to continue working in Malaysia. This is under consideration and MSIA is hopeful to hear some positive news.”

He added that attracting foreign direct investment from multinational semiconductor companies is crucial for driving technology transfer and bolstering the local ecosystem. This may require offering competitive incentives and reducing barriers to entry to make Malaysia a more appealing destination for such investments.

Wong pointed out that the government’s National Semiconductor Strategy aims to nurture 10 Malaysian companies in advanced packaging and IC design.

“Providing funding, mentorship, and other support for local startups and small and medium enterprises will be essential in building a stronger indigenous semiconductor industry. Such measures are critical for fostering innovation and ensuring the industry’s sustainability.

“As for improving productivity and automation, upgrading manufacturing capabilities through smart automation and Industry 4.0 technologies will be key to enhancing productivity and competitiveness in the semiconductor industry.”

Adopting these advanced technologies will help streamline processes and reduce costs, making Malaysian semiconductor products more competitive on the global stage, Wong said.

“The government should continue to position Malaysia as an attractive alternative manufacturing hub for advanced semiconductor products. This strategic positioning is crucial as multinational companies seek to diversify their supply chains in response to global uncertainties.”

He expressed optimism about Malaysia’s potential to solidify its position as a leading semiconductor manufacturing hub. “With the right policies, investments, and collaborative efforts, Malaysia has the potential to achieve its ambitious growth targets for the industry,” Wong said.

Source: The Sun

MSIA president: Malaysia must enhance capabilities across semiconductor value chain

The Malaysian semiconductor industry could benefit from a second Donald Trump US presidency, according to Public Investment Bank Bhd (PublicInvest).

The research firm said that increased geopolitical tensions might drive more semiconductor companies to relocate to Malaysia, thanks to the country’s neutral position in the region and its strong semiconductor supply chain combined with cost advantages.

“To mitigate the potential risk of trade sanctions, we gather that more semiconductor customers plan to adopt the China + 1 and Taiwan + 1 policies by setting up a new footprint elsewhere.”

“Under the Trump government, we believe more restrictions will be imposed on US customers who source equipment from China, and also a steep rise in tariffs, which will make China’s imports more expensive,” it said.

PublicInvest said to address potential risks, US-China business partners might move their production lines and orders to a third country, which could benefit local players through increased orders and technology transfers from these multinational corporations (MNCs).

Additionally, the firm anticipated a renewed interest in local technology companies as valuations become more appealing, following a week of profit-taking in the sector.

“As we gather more positive guidance from respective management, we expect to see better financial performance in the second quarter, followed by strong momentum in the second half.”

“However, more volatility is also expected in tech stocks ahead of the US presidential election and the timing of interest rate cuts,” PublicInvest said.

Moreover, it mentioned that Nvidia’s release of its new Blackwell GPUs, combined with the rapid growth of large language models, is expected to transform nearly every industry and create new opportunities for local technology companies.

The firm continues to have an ‘Overweight’ rating on the technology sector, highlighting Inari Amertron Bhd, D&O Green Technologies Bhd, and QES Group Bhd as its top recommendations.

Source: NST

A Trump presidency could benefit Malaysian semicondcutor industry – analyst

Chery’s substantial investment of over RM1 billion in Malaysia signifies a bold departure from past strategies as it chooses to make a significant independent market entry, eschewing reliance on distributors.

The Chinese carmaker’s comeback effort to establish Malaysia as a pivotal Asean automotive hub for local and export markets could benefit notable automotive parts manufacturers such as Feytech Holdings Bhd and DRB-HICOM Bhd.

Affin Hwang Capital automotive analyst Afifah Ishak said Chery was targeting the right-hand drive of both the local and export markets including Singapore, Thailand, Brunei and Australia.

The plan kicks off with an estimated 500 units of Chery models for export in 2024, with the carmaker expecting a three-year compounded annual growth rate of 189 per cent to 12,000 units in 2027.

“We believe that Chery Malaysia’s position is solid, on the back of the recent establishment of its own CKD plant and the appointment of large dealers’ networks across each state in Malaysia,” said Afifah, who visited Chery’s first local CKD plant in Shah Alam recently.

The plant was developed at a cost of RM125 million which began operations in June this year, five months after construction commenced.

It includes a training centre, an R&D centre and the final assembly line for the Jaecoo J7 SUV which is assembled in two variants – the 2WD and AWD with prices ranging between RM138,000 and RM148,800.

The plant has an annual production capacity of 35,000 units and is currently operating at a 50 per cent utilisation rate.

Existing assembly plant in Kedah still producing

Chery’s existing assembly at the Inokom plant in Kulim, Kedah still continues, focusing on four of its SUV models – Omoda 5, Tiggo 8 Pro and the newly-launched Tiggo 7 Pro, and Omoda E5 electric vehicle.

“We understand that Chery plans to expand its capacity at the Inokom plant, to cater to the assembly of its newly-launched models. Nevertheless, we believe that the capacity expansion would take some time to materialise as Chery enters the Inokom plant without any equity stake.

“Hence, it is likely to have a lower priority compared to other auto players with equity ownership

in the plant, such as Sime Darby Bhd (51 per cent stake), Bermaz Auto Bhd (29 per cent stake),

Hyundai Motor Company (15 per cent stake) and Sime Darby Hyundai (5.0 per cent stake),” Afifah noted.

Currently, Chery’s annual production capacity at the Inokom plant stands at 6,000 units, which accounts for about 15 per cent of Inokom’s overall annual production capacity of 38,000 units.

Multi-brand strategy

Chery adopts a multi-brand strategy by introducing its sub-brands in Malaysia, said Afifah.

It began with the introduction of Omoda and Tiggo in July 2023, followed by the upcoming launch of Jaecoo in July this year.

Additionally, another sub-brand, Exceed, is expected to launch by 2027.

However, Jetour, despite being under the umbrella of Chery International, is expected to enter the Malaysian market in the second half of 2024 and operate as a distinct entity with its own separate management team, independent from Chery Malaysia.

“The multi-brand strategy is a common approach among Chinese automotive companies, typically executed through the creation of separate sub-brands or partnerships with third parties to develop new brands,” Afifah said.

Chery initially marked its first presence in Malaysia back in 2005 through Chery Alado as its authorised distributor, offering both CBU and CKD lineups.

The CKD models were locally assembled at Oriental Assemblers Sdn Bhd’s plant in Johor. However, Chery’s last operation in Malaysia was in 2017 which struggled with overall sales of only 137 units.

Leveraging Chery’s Asean ambition

Automotive parts suppliers are set to gain from Chery’s efforts to position Malaysia as an Asean automotive hub.

Afifah said Chery’s ongoing CKD assembly expansion for local and export markets has resulted in a noteworthy achievement of 57 per cent localisation of automotive parts through collaborations with 15 local vendors.

This surpasses the required 40 per cent under the National Automotive Policy 2020.

“We gather that key automotive parts suppliers such as Feytech Holdings, APM Automotive Holdings Bhd and DRB-HICOM are integral to Chery Malaysia’s supply chain,” she said.

Source: NST

Chery embarks on ambitious plan

Developing advanced steel-making capacities is crucial for ensuring domestic iron and steel supply, reducing import reliance and generating forex earnings 

MALAYSIA’S iron and steel industry is an important sector that supports the nation’s infrastructure development and economic growth. 

Among the major players are Alliance Steel (M) Sdn Bhd, Amsteel Mills Sdn Bhd, Ann Joo Resources Bhd, Eastern Steel Sdn Bhd, Malay- sia Steel Works (KL) Bhd and Southern Steel Bhd. 

These companies produce a variety of steel products, including rebar, steel wire rods, sections, and structural components. These products are crucial for the construction of buildings, bridges, roads, railways, and other civil engineering projects. 

Evolution of the Steel and Iron Industry

According to the 15th Report on the Status & Outlook of the Malaysian Iron and Steel Industry 2024/2025, the local iron and steel industry has significantly influenced the nation’s economic and industrial development since 1957. 

The development of advanced steel-making capacities is crucial for ensuring iron and steel supply and to reduce import reliance and generate foreign exchange (forex) earnings. 

In 2023, Malaysia’s basic metals industry employed 112,157 people which accounts for 4.7% of the total manufacturing employment. 

Basic metals account for 2.5% of GDP, significantly impacting construction and manufacturing industries whereas iron and steel exports account for 2.4% of total manufactured goods. 

In 2016, the Malaysian iron and steel industry showed signs of recovery due to China’s “Blue Sky” policy, which reduced production capacities and imposed stricter green regulations on steel producers. 

As the domestic market normalised, efforts were refocused on strengthening the nation’s steel capabilities, particularly within South-East Asia. 

In May 2018, China introduced ultra-low emission standards for steelmakers. Despite China’s actions, the rationalisation move prompted an increase in outward investment driven by Chinese steelmakers, particularly in South-East Asia. 

In April 2019, the Malaysian iron and steel industry players collaborated to submit a White Paper to the Investment, Trade and Industry Ministry (MITI) demonstrating the government’s commitment to working with all segments of the industry to ensure its sustainability. 

On the other hand, the industry faces overcapacity issues and low utilisation rates, with global steel consumption declining in 2022. 

MITI has imposed a two-year moratorium on the expansion and diversification of the steel-making industry, effective Aug 15, 2023. 

The ministry also aimed to collaborate with the Malaysian Iron & Steel Industry Federation (MISIF) and the Malaysia Steel Association to formulate the Green Transition Roadmap for the Iron and Steel Industry. 

Moving forward, the sector will undergo a significant transition towards a sustainable and low-carbon economy through the National Energy Transition Roadmap, Hydrogen Economy and Technology Roadmap, Petronas Hydrogen Plan and Tenaga Nasional Hydrogen Vision. 

National Infrastructure and Challenges

HSBC Bank Malaysia CEO Datuk Omar Siddiq said the Malaysian steel industry is integral to national infrastructure projects as it provided essential materials for construction and development. 

“These steel products would form the backbone of infrastructure construction, used in buildings, bridges, roads, railways and other civil engineering projects,” he told The Malaysian Reserve (TMR). 

A new flat steel producer is set to start production in the second half of 2024, which is expected to transform the Malaysian steel industry. 

However, he warned that Malaysia faced significant challenges in expanding its market share in the global steel market, primarily due to fierce competition from established steel-producing nations such as China, Japan, South Korea, Vietnam and Indonesia. 

These countries benefit from economies of scale and strong export networks, posing challenges for Malaysia in terms of pricing and production volume. 

Omar said in 2023, Malaysia’s steel industry saw total exports valued at RM30.4 billion, predominantly comprising fundamental grade steel. 

Regardless, there is a promising opportunity for industry players to commence regional exports of higher-grade steel by the end of this year. 

He said leveraging free trade agreements such as ASEAN Free Trade Area, Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership could strengthen supply chains and provide broader market access within ASEAN and beyond. 

MISIF president Datuk Lim Hong Thye expressed hope that the government would prioritise and expedite the necessary infrastructure projects. 

“We are looking forward to infrastructure projects such as the Mass Rapid Transit and Light Rail Transit (LRT) project in Penang and hopefully, there will soon be either Bus Rapid Transit (BRT) or LRT launched in Johor,” he said in his speech at the launch of MISIF’s 15th report. 

The report further showed that the industry faced structural challenges such as overcapacity, low green technology adoption, limited scrap access, low research and development investment, insufficient financing and a low-skilled workforce. 

The absence of a green shift increases the risk of stricter regulations which could further pressure profit margins and hinder investment. 

Due to China’s decarbonisation efforts in steel production, ASEAN region including Malaysia has faced overcapacity issues. 

This excess steel production has impacted domestic producers, especially during weakening domestic demand and uneven global economic growth. 

However, the steel industry’s CO2 emissions continue to rise, highlighting the need for green technology adoption. 

“Failure to keep pace with these developments could lead to increased trade barriers and competitiveness challenges,” the report added. 

Global Disruptions, Technological Advancements and Initiatives Omar noted that geopolitical tensions have influenced regulatory policies and government interventions, affecting operational strategies and business planning within Malaysia’s steel industry. 

“Malaysia can mitigate dependency on traditionally affected regions by leveraging FTAs which enables Malaysia to diversify its export markets and explore emerging regions while promoting green steel production,” he said. 

However, according to the report, challenges for moving to green solutions included limited technology availability and high integration costs. 

Financing for green technologies also presented challenges due to traditional mechanisms not aligning with long-term investment horizons and risk profiles, which requires a major reorientation of capital and financial flows. 

In turn, it makes it necessary for financial institutions to explore innovative financing approaches to support the green transition for businesses. 

On the other hand, the green transition necessitates the development of skilled personnel capable of not only operating but also innovating and optimising green technologies. 

Omar said initiatives were put in order, focusing on reducing energy consumption per unit of steel produced, upgrading equipment, optimising operations and implementing energy management systems. 

He also told TMR that the industry is currently exploring hydrogen steel-making and carbon capture, utilisation and storage as these technologies mature. 

He said the future outlook for Malaysia’s iron and steel industry looks promising, driven by factors such as infrastructure development, technological advancements and strategic initiatives. 

Omar added that government policy intervention is essential to ensure the sustainability of the industry and fair trade. 

For that, an independent committee for Malaysia’s iron and steel industry has been formed under the guidance of MITI to evaluate and recalibrate its trajectory towards fulfilling the objectives outlined in the New Industrial Master Plan 2030. 

The committee, which Omar chairs, comprises industry experts such as Taylor’s University professor Dr Ong Kian Ming; South-East Asia Iron and Steel Institute’s secretary general Yeoh Wee Jin; Khazanah Nasional Bhd chief investment officer Datuk Hisham Hamdan and several others. 

Industry Performance 

Based on MISIF’s report, Malaysia’s apparent steel consumption increased by 4.5% in 2023 to 7.9 million metric tonnes (MT) for the third consecutive year, driven by improved finished steel production and higher imports. 

Despite this growth, the capacity utilisation rate remained low at 39.1%, while exports of iron and steel products increased by 14.5%. 

Iron and steel exports went up 14.5% to 8.2 million MT last year, with Turkiye (1.2 million MT), Hong Kong (1.04 million MT) and Singa- pore (996,093 MT) as major markets. 

Furthermore, Malaysia’s top iron and steel imports are China (2.04 million MT), Taiwan (921,860 MT) and Vietnam (825,952 MT). 

On a global scale, China remains the top 3 exporter for 2022 with 68.1 million MT, followed by Japan (31.7 million MT) and South Korea (25.5 million MT). 

Lastly, the US is the top importer globally with 28.9 million MT, followed by Germany (21 million MT) and Italy (20.2 million MT). 

MITI Deputy Minister Liew Chin Tong explained that the steel industry is exploring various measures to advance towards a green and sustainability agenda, aiming to ensure progress. 

The next level of decarbonisation requires a comprehensive approach from the government, considering not just the steel industry but the entire ecosystem. 

Liew said Malaysia’s decarbonisation process is influenced by the European Union’s (EU) Carbon Border Adjustment Tax (CBAT), which will be imposed effective Jan 1, 2026. 

Through this policy, either Malaysia or the EU collects carbon tax on the products it exports to them. 

However, this will take some time for Malaysia to implement the carbon tax. 

“The process is that we will have to first price carbon, then only we can start trading carbon. 

“Once we trade carbon then we can discuss the potential of taxing carbon,” Liew said. 

Source: The Malaysian Reserve

Mapping Malaysia’s steel sector journey

A robust domestic semiconductor industry, nurtured by the National Semiconductor Strategy (NSS), can reduce reliance on imports and strengthen the automotive supply chain, said the Malaysia Automotive, Robotics and IoT Institute (MARii).

Its chief executive officer, Azrul Reza Aziz said electric vehicles (EVs) rely on semiconductor components for critical functions, such as battery management and onboard computing, among others.

“Hence, supply chain development is crucial for supporting the production and assembly of EVs,” he told Bernama.

For instance, a hybrid car typically requires around 1,500 microchips, while EVs may require at least 3,000 chips per car, sourced from the electrical and electronics (E&E) sector.

“Phase 1-3 of the NSS, which emphasises advanced chip manufacturers to become cutting edge companies, will enable our local automotive suppliers to be more innovative in product developments.

“This ensures that their products have aspired to support the local EV manufacturers and industry in Malaysia, which will boost the overall automotive industry,” Azrul Reza said.

On May 28, 2024, the NSS, announced by Prime Minister Datuk Seri Anwar Ibrahim, consists of three main phases.

Phase 1 will focus on domestic direct investment focusing on integrated circuit design, advanced packaging and manufacturing equipment, while foreign direct investment will emphasise wafer fabs and manufacturing equipment. 

Meanwhile, in Phase 2, Malaysia is to establish at least 10 local companies in the design and advanced packaging sector with revenues of between RM1 billion and RM4.7 billion.

Phase 3 will focus on supporting the development of world-class Malaysian semiconductor design, advanced packaging and manufacturing equipment firms while attracting buyers of advanced chips.

NSS enhances EV ecosystem

Azrul Reza said the NSS will enhance the ecosystem and uplift the capabilities of the local automotive suppliers and every policy has identified the required support to ensure high value-added activities are conducted by the local industry and produce world-class goods for the global market.

“NSS, in particular, has outlined the targets that our local automotive supply chain may embark on or expand in the E&E sector, such as establishing 100 semiconductor-related companies, developing Malaysia as a global research and development hub for semiconductors, and training and upskilling 60,000 highly skilled Malaysian engineers.

“Therefore, the NSS will offer vast opportunities for local automotive vendors to participate and arise as suppliers to the emerging new vehicles coming ahead,” he said.

As the world’s sixth-largest exporter of semiconductors, Azrul Reza said Malaysia has begun attracting higher-value investments in front-end activities including integrated circuit design, wafer fabrication, and advanced packaging, together with semiconductor machinery and equipment manufacturing.

Malaysia has drawn attention from industry giants like Intel, GlobalFoundries, Infineon and Neways. This will eventually elevate the country’s position in the global value chain, he said.

“Concerning the automotive industry, we do see bright prospects. The growth in this industry will be supported by regional trends that promote economic growth and ecosystem development, consumer demand, as well as the introduction of exciting, new models by original equipment manufacturers.

“The magnitude of importance for semiconductors towards the growth of EVs remains crucial as Malaysia has set a target to achieve 20 per cent of xEVs which includes hybrid, plug-in hybrid EV (PHEV), battery electric vehicle (BEV) and fuel cell electric vehicle (FCEV) of total industry volume (TIV) by 2030, with the current achievement of 4.95 per cent of TIV in March 2024,” Azrul Reza said.

Source: Bernama

Robust semiconductor sector reduces reliance on imports, boost automotive supply chain

DXN Holdings Bhd, a global manufacturer of nutraceutical products, sustained its growth momentum in the first quarter of its financial year ending Feb 28, 2025 (Q1’25), delivering consolidated revenue of RM475.1 million, a 12% year-on-year (y-o-y) jump compared to RM424 million recorded in the same quarter of FY24.

The group’s organic expansion in key markets such as Peru, Bolivia, Mexico and India continued to be the primary driver of its sustained growth. The growth resulted from a combination of independent initiatives, high impact events organised by leadership groups, innovative product introductions and effective marketing campaigns.

DXN’s profitability strengthened with earnings before interest, tax, depreciation and amortisation reaching RM151.9 million, representing an 11% y-o-y increase from RM136.8 million in Q1’24. Profit before taxation grew to RM136.3 million from RM124.1 million in Q1’24, reflecting a 9.8% y-o-y improvement.

Meanwhile, net profit expanded by 10.3% y-o-y to RM85.6 million from RM77.6 million in the previous corresponding quarter, underscoring DXN’s continued financial strength.

DXN executive chairman and founder Datuk Lim Siow Jin said, “Building on our exceptional performance in FY24, fuelled by sustained growth in Latin America and India, we are strategically positioned to enter key markets such as Brazil, Argentina and Chile. Drawing on our successful marketing strategy, combined with our established foothold in

the Latin America region, we aim to replicate success in these promising markets.”

In FY24, DXN invested RM119.2 million in capital expenditures (capex) to establish new manufacturing facilities in China, India, Dubai and Mexico, he said.

“These facilities began commercial production in calendar year 2023, significantly enhancing our production capabilities across a diverse range of products including coffee, tea, carbonated juice and spirulina. Our recently established manufacturing facilities in Nepal and Bangladesh, which will produce a range of our bestselling coffee-related products, are progressing well, with commercial production expected to commence by the end of 2024.:

This year, Lim said, it intends to allocate more than RM125 million in capex to expand their manufacturing capacity. The expansion aimed to accommodate the anticipated demand from new markets like Zambia and Ghana.

“It is part of our initiative to support the growing demand for our products from our global members,” he added

Moving forward, Lim said DXN will continue to prioritise new market expansion, the launch of new innovative products, optimisation of production efficiency and business resilience. By capitalising on the diverse growth avenues, DXN is confident of delivering sustained value to shareholders.

DXN maintains a robust financial position, with cash and cash equivalents of RM609.2 million exceeding total borrowings of RM140.1 million as of May 31. Additionally, a healthy net operating cash flow of RM137.8 million was generated in the quarter under review.

In line with its quarterly dividend policy, the board of directors has declared a first interim dividend of 0.9 sen per ordinary share for Q1’25, totalling RM44.8 million, a 52.3% payout ratio based on its net profit for the quarter.

Source: The Sun

DXN sustains growth momentum, driven by expansion in key markets

FSBM Holdings Bhd’s wholly owned subsidiary, FSBM MES Elite Sdn Bhd, has entered into a strategic partnership with Federation of Malaysian Manufacturers (FMM) on Mission-Based Project 2.1 (MBP 2.1) to build a strong technology ecosystem, accelerate technology adoption among manufacturers and facilitate the transition to advanced manufacturing practices.

The collaboration is a pivotal part of National Industrial Master Plan 2030 (NIMP 2030), focusing specifically on MBP 2.1. The goal of this project is to establish 3,000 smart factories by 2030 through the adoption of Industry 4.0 and digital technologies.

NIMP 2030 is designed to elevate Malaysia’s manufacturing industry to new heights, capitalising on emerging global trends and fostering collaboration between the government and the private sector.

SMEs are the backbone of the Malaysian economy, accounting for more than 97.5% of Malaysian businesses, with 87% being micro SMEs. Recognising their critical role, the initiative emphasises nurturing local technology solution providers and supporting various technology adoption initiatives.

By enhancing the ecosystem, the partnership will encourage businesses to leverage digital transformation as well as 5G technology to improve connectivity and operational and connectivity efficiency, thus reducing reliance on low-skilled labor, improving overall business competitiveness and fosteringg technological innovation.

FSBM Holdings managing director Pang Kiew Kun said: “At FSBM, our MES or smart manufacturing-related solutions are customised according to customer needs and developed entirely by our local talent. Therefore, we believe that these solutions not only solve pain points for the local manufacturing industry, but also aim to make the local manufacturing industry smarter, more competitive, more efficient, and able to respond to rapid technological changes in real time. Our collaboration with FMM is to accelerate the pace of local industries towards Industry 4.0.”

Through the collaboration, he added, they hope to provide advanced technical support and solutions to the local manufacturing industry to help companies improve production efficiency and market competitiveness.

FSBM MES Elite has been selected as one of the 29 strategic partners for FMM’s MBP 2.1 journey. This collaboration leverages the strengths of both organisations to drive advancements in Malaysia’s manufacturing sector. By integrating automation and innovative technologies into new manufacturing environment Licenses, this partnership aims to enhance manufacturing capabilities, drive productivity, and spur technological innovation.

“Our goal is to build a smarter, more efficient, and interconnected manufacturing ecosystem to promote the sustainable development of the entire industry. We firmly believe that driving intelligent transformation will not only enhance the overall level of the manufacturing industry but also position Malaysia as an attractive prospect for high-tech, innovative, and high value-added industries in the future, attracting quality foreign direct investment.” said Pang.

Source: The Sun

FSBM, FMM collaborate to enhance tech ecosystem, adoption in manufacturing industry

Plexus Corp, a US-based global leader in partnering with companies to create products that build a better world, held a groundbreaking ceremony for its sixth facility in Bandar Cassia Technology Park, Penang, recently.

The state-of-the-art facility, named Plexus Bridgeview, spans 20 acres, encompassing 560,000 sq ft of cutting-edge infrastructure.

Plexus estimates investing RM1 billion over the next three years, signalling its commitment to growth in Malaysia and the Asia-Pacific region.

Plexus established a footprint in Malaysia more than 20 years ago. It has more than 10,000 employees across five manufacturing sites and one design centre in Penang.

The new upscale facility will enable the expansion of its semiconductor capital equipment business, supporting Malaysia’s New Industrial Master Plan 2030 (NIMP 2030), and the ongoing growth of its business supporting leading healthcare and life sciences companies. The expansion will create opportunities for about 1,800 high-skilled jobs in the region.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said, “Plexus’ RM1 billion expansion clearly affirms Malaysia’s position not only as a preferred investment destination for tech-based MNCs, but also as a country that is serious about the swift implementation of investors’ commitments. In line with the targets of the New Industrial Master Plan 2030, this project will create a ripple effect by generating high skilled job opportunities and developing our E&E (electrical and electronics) supply chain ecosystem to serve a growing global semiconductor, and healthcare device markets. This also supports our efforts in positioning Malaysia as a regional manufacturing and services hub for Asean and Asia.”

Malaysia Investment Development Authority (Mida) CEO Sikh Shamsul Ibrahim Sikh Abdul Majid said, “Mida is thrilled to see Plexus’ trust and commitment to expanding its operations in Malaysia with the establishment of its sixth manufacturing plant. Our country’s robust electrical and electronics ecosystem, the exceptional capabilities of our local talent, and our well-developed semiconductor supply chain provide the perfect foundation for investors like Plexus. We are buoyed by the opportunities this investment will bring for Plexus, the local community, and the industry, and we look forward to Plexus’s continued advancement in Malaysia.”

Victor Tan, Plexus’ regional president Asia-Pacific, stated “The establishment of the new Plexus Bridgeview facility demonstrates our commitment to growth within the region, and provides a strong opportunity to meet the growing needs of our valued customers. We are grateful for the facilitation and continued support of Miti, Mida and Invest Penang to help enable these important milestones on Plexus’ growth journey.”

As part of its commitment to being a sustainable and responsible business partner, Plexus contributes to non-profit causes within Malaysian communities and encourages employee volunteerism through charitable giving initiatives, and science, technology, engineering and mathematics education sponsorships and collaborations. Notably, Plexus has installed solar panels at the Plexus Islandview and Seaside facilities and plans to continue this effort across all remaining facilities to reduce its carbon footprint.

Source: The Sun

Plexus breaks ground for facility in Penang, its sixth in Malaysia

Malaysia has the right manufacturing landscape and enablers to capitalise on the global medical devices industry’s bright prospects.

Investment, Trade and Industry Minister, Tengku Datuk Seri Zafrul Abdul Aziz said the global medical devices industry is projected to grow to US$887 billion by 2032 from US$542 billion projected for 2024.

“Malaysia has what it takes – a solid foundation, a thriving ecosystem, strong political will – to engineer the rapid growth of our manufacturing industry by engaging key stakeholders, particularly industry members themselves.

“The nation can be a manufacturing hub for medical devices, allowing global brands to serve the ASEAN market, with its 670-million population or even the Asian market, with its 4.7-billion people,“ he said at the groundbreaking ceremony of Plexus Corp’s sixth manufacturing facility, Plexus Bridgeview, in Penang.

Tengku Zafrul said today’s event is another step towards bringing New Industrial Master Plan 2030’s (NIMP2030) action plans to life.

He added that Plexus’ focus on Semiconductor Capital Equipment, as well as the Healthcare and Life Sciences sector, aligns with the priority sectors under NIMP2030.

“This will create a strong manufacturing ecosystem, driven by dynamic partnerships between leading global companies and Malaysian firms, powered by world-class talents.

“This is what will make Malaysia a manufacturing and services hub for Asia,“ he added.

Plexus regional president, Victor Tan said the establishment of the new Plexus Bridgeview facility demonstrates its commitment to growth within the region and provides a strong opportunity to meet the growing needs of its valued customers while simultaneously elevating the local small and medium industries.

He said the state-of-the-art facility, located on a sprawling 8.09 hectares-plot, will encompass an impressive cutting-edge infrastructure, with an estimated investment of RM1 billion over the next three years.

“This expansion will also create an estimated 1,800 new employment opportunities of high-skilled jobs in the region,“ he added.

Since its establishment in Malaysia over 20 years ago, Plexus has grown to employ more than 10,000 team members.

Source: Bernama

Malaysia poised to capture medical device manufacturing market

National carmaker Proton has recently kicked off its RM253 million expansion project, adding new stamping facilities in Tanjong Malim, which will be known as Stamping E and F-Lines.

In a statement today, Proton said the project will increase the volume of parts stamping at Proton Tanjong Malim as the company prepares to relocate production of the Proton Saga from Shah Alam by 2026.

The expansion is also expected to accommodate growing production volumes and any new models to be introduced in the near future.

“This is the second planned expansion to Proton’s parts stamping capabilities in recent years after the inauguration of the D-Line stamping plant on March 14, 2023 by Perak Menteri Besar Datuk Seri Saarani Mohamad,” the company said.

Proton chief executive officer Li Chunrong said the addition of the parts stamping E and F-Lines is critical to the company’s future volume expansion plans, as it provides more flexibility to ramp up production and meet market demand.

“For the whole of 2023 and up to June 2024, our Tanjong Malim plant has stamped out 6.067 million components, of which 395,211 are from the new D-Line. This number will grow exponentially when production of the Proton Saga is relocated here in 2026,” he said.

The new E-Line will feature a four-stage stamping process with a 1,600-tonne stamping machine and three 800-tonne machines. 

The F-Line, meanwhile, will have a five-stage stamping process utilising a 2,000-tonne, 1,200-tonne and three 1,000-tonne stamping force machines.

In addition to the stamping machines, Proton said robots will be used to transfer parts between workstations, while IR 4.0 technology will be implemented using real-time data and machine learning to improve the quality of parts produced.

Furthermore, the new stamping lines will reduce Proton’s reliance on imported parts, insulating the company against potential disruptions to global trade and improving the local parts supply.

“At the same time, the investment builds on competencies available in Tanjong Malim and will contribute towards the ongoing development of the Automotive High Tech Valley,” Proton said.

Source: Bernama

Proton begins half billion ringgit expansion in Tg Malim